Importing an HD 720 movie into an iMovie HD 720 project

Hi everyone,
I'm kinda stuck with a video quality issue.
I downloaded a few HD 720p movie trailers from the Quicktime Movie Trailer website. They look simply great when I look at them with Quicktime Pro.
Because I'm a newbie to iMovie and iDVD, I wanted to make a little test project by making an compilation of a few of these trailers and then exporting them to iDVD to make a DVD.
I do not succeed in creating a DVD that has an acceptable video quality. At first, I believed this to be a problem with the way iDVD encoded my DVD and I did try all possible settings during the last couple of days.
Yesterday, I actually noticed for the first time that I already have this poor video quality in iMovie HD. I checked my playback video quality setting and it's set to Highest. When I drag an HD720 movie into iMovie and I hit the play button, the image quality is gone.
Instead of exporting it directly to iDVD, I also tried to export to a Quicktime movie with the Best Quality setting. The exported quicktime movie is nowhere comparable with the original HD720 movie. I'm not talking about a few minor details but a serious quality deterioration.
Does anyone have any advise here?
Thanks,
Jan
ps: I tried using an alternative application for creating a video dvd (Toast). Simply dragged the downloaded HD720 movie trailer in Toast and burned that to a DVD and the result was perfect!
iMac Intel Duo Core 2Ghz, 2GB memory, ATI Radeon X1600 with 256MB memory   Mac OS X (10.4)  

Just an update for all concerned.
It seems I lost my Quicktime mpeg component when I upgraded to QT7. When I reinstalled that I was able to view the HD m2 file in both Quicktime and FCP 4.5. However, only the first seven mintues of an 80 minute movie.
When I import it into MPeg Streamline the entire file shows up and I am able to view it, but when I try to export it as a Quicktime the application quits, without warning.
Does anyone know how I can convert this file and get it into FCP?
Thanks in advance,
Andrew

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